American President Donald Trump is all prepared to slap tariffs on the remaining $300 billion dollars according to a trade deal, said the Commerce Secretary Wilbur Ross.
Speaking to CNBC, Phil LeBeau at the Paris Airshow Monday, Ross said enforcement would be the most important element of any potential deal between the world’s two largest economies.
“We will eventually make a deal, but if we don’t, the president is perfectly happy with continuing the tariff movements that we’ve already announced, as well as imposing the new ones that he has temporarily suspended,” Ross said.
His comments clearly indicated that the administration will stand in a union if things on the talks go south.
Trump unexpectedly accused China of reneging on a deal early last month and announced that tariffs on $200 billion worth of Chinese goods would increase to 25% from 10% on May 10. Beijing retaliated, raising levies on $60 billion worth of U.S. products. Releasing a much-anticipated white paper in early June, China said the global trade problems were started by the United States and claimed Washington had been unreliable during talks.
Ross played down a prospect. It means that in the G-20 meeting in Osaka on 28 and 29 June, there is a possibility of an agreement as Trump and Chinese President Xi Jinping are expected to be present.
He said the G-20 was not a place “where you’re going to negotiate a 2,500-page agreement,” adding that “there may be an agreement on the path forward, but that’s about as far as we can expect it to go.”
Ross also hinted that Washington was prepared to deploy tariffs on auto imports as a motive to put pressure on foreign carmakers into manufacturing in the U.S.
“The U.S. market is the healthiest auto market in the world right now. The Chinese market has been crumbling, the European market is stumbling as well,” he said.
“In the American market, the big cars are what sells best in the States, and those are the highest profit margin cars, so there is a big logic, independently of what actions we are taking on trade, for more capital investment by foreign makers in the U.S. We are just accelerating that with the potential tariffs.”
To that, Ross also added that the President is serious enough on the slapping of tariffs on auto imports, including those from European Union.